auditor
This query is : Open
jigyanshu sekhar sahoo
(Querist)
08 March 2017
relation between sec139(2) and(10)
how the later is applied as it contravene 139(2)
Jatin Bajaj
(Expert)
08 March 2017
AS PER SECTION 139(2), READ WITH RULE 5 OF AUDITOR RULE WHICH DEALS WITH ROTATION OF AUDITOR SHALL BE APPLICABLE TO ALL THE LISTED COMPANIES
ALL UNLISTED PUBLIC COMPANI HAVING THE PAID UP SHARE CAPITAL OF 10 CRORE RUPEES OR MORE
ALL PRIVATE COMPANIES HAVING PAID UP SHARE CAPITAL OF 20 CRORE RUPEES OR MORE
COMPANIES HAVING PAID UP SHARECAPITAL BELOW THE TRESHOLD LIMIT BUT HAVING LOAN OR BORROWING IN EXCESS OF 50 CRORE RUPEES OR MORE
IN THE ABOVE SITUATION , INDIVISUAL SHALLL NOT BE APPOINTED AS AN AUDITOR FOR MORE THAN A PERIOD OF 5 YEARS
AN AUDIT FIRM FOR A 2 TERMS OF FIVE YEAR.
BUT FOR REST OF THE COMPANIES GENERAL RULE AS PER SECTION 139(1) APPLIES THAT EVERY AUDITOR SHALL HOLD THE OFFICE FROM THE CONCLUSION OF THIS AGM TILL THE CONCLUSION OF 6TH AGM , MEANS FOR THE PERIOD OF 5 YEARS AND CAN BE FURTHER APPOINTED .
AND SECTION 139(10) STSTES THAT IF AUDITOR IS NOT APPOINTED IN THAT AGM THEN EXISTING AUDITOR SHALL DEEMED TO CONTINUE THE AUDITOR OF THE COMPANY
ALL UNLISTED PUBLIC COMPANI HAVING THE PAID UP SHARE CAPITAL OF 10 CRORE RUPEES OR MORE
ALL PRIVATE COMPANIES HAVING PAID UP SHARE CAPITAL OF 20 CRORE RUPEES OR MORE
COMPANIES HAVING PAID UP SHARECAPITAL BELOW THE TRESHOLD LIMIT BUT HAVING LOAN OR BORROWING IN EXCESS OF 50 CRORE RUPEES OR MORE
IN THE ABOVE SITUATION , INDIVISUAL SHALLL NOT BE APPOINTED AS AN AUDITOR FOR MORE THAN A PERIOD OF 5 YEARS
AN AUDIT FIRM FOR A 2 TERMS OF FIVE YEAR.
BUT FOR REST OF THE COMPANIES GENERAL RULE AS PER SECTION 139(1) APPLIES THAT EVERY AUDITOR SHALL HOLD THE OFFICE FROM THE CONCLUSION OF THIS AGM TILL THE CONCLUSION OF 6TH AGM , MEANS FOR THE PERIOD OF 5 YEARS AND CAN BE FURTHER APPOINTED .
AND SECTION 139(10) STSTES THAT IF AUDITOR IS NOT APPOINTED IN THAT AGM THEN EXISTING AUDITOR SHALL DEEMED TO CONTINUE THE AUDITOR OF THE COMPANY
jigyanshu sekhar sahoo
(Querist)
08 March 2017
in that case auditor and company are liable for punishment u/s 147????
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